THRESHOLD RAISED

Self-assessment tax can help save you from prosecution

Lubna.Kably@timesgroup.com

Mumbai:07.07.2019

The threshold that triggers prosecution proceedings for non-filing of income-tax (I-T) returns by individuals has been raised slightly.

“Section 276CC empowers the government to prosecute and imprison a non-corporate taxpayer if there is a failure to file I-T returns and

tax has been evaded through such non-filing. The budget proposes that if the net tax is less than Rs 10,000 then there will be no prosecution. The earlier limit was Rs 3,000,” said Ameet Patel, tax partner at Manohar Chowdhry and Associates.

“In my view, the threshold is too low even after the amendment. Prosecution is a serious step and should be resorted to only in extreme cases. The threshold should be at least Rs 5 lakh of net tax evasion. A welcome step is that the Finance Bill proposes to give credit for all tax payments to arrive at the net figure of tax evaded,” Patel added.

“Currently, only the advance taxes and the tax deducted at source are considered to arrive at the figure of tax evaded.

“The budget proposes to also take into cognisance the self-assessment tax, which is typically paid by the taxpayer prior to filing his return of income, to arrive at the net tax figure. A taxpayer can pay the requisite self- assessment tax before the expiry of the assessment year (say, if his I-T return is due in July end, he can pay this tax by March of next calendar year). This could help reduce the net figure of tax evaded and save him or her from prosecution proceedings,” said Sandeep Bhalla, partner at Dhruva Advisors.

Govt makes life more difficult for charity trusts

Lubna.Kably@timesgroup.com

Mumbai:07.07.2019

The Income-tax Commissioner now has sweeping powers to cancel the registration of a charitable trust or institution if it has violated any requirement under ‘any other law’.

At the time of granting registration under Section 12AA (post which, exemption under the I-T Act is available to the trust), the commissioner has to satisfy himself that the trust has met the requirements of other laws that are material for meeting the objectives of the trust.

Second, a registration already granted can be cancelled by the commissioner if the requirements of such laws were subsequently violated. However, the trust is given an opportunity to be heard.

The consequences of cancellation are onerous. To begin with, its income will no longer be tax-free. The bigger whammy is an ‘exit tax’ will be payable by it on the fair market value of its net assets, at the maximum marginal rate of 42.74%. This will badly impact educational institutions and hospitals in Tier-1 cities like Mumbai that own valuable property — say building or land. In fact, they may not have the funds to bear the exit tax burden, said experts.

“Letting the commissioner decide whether there is compliance or not with any other Act is a dangerous provision. Other laws cannot and must not be enforced through the I-T Act. At best, the commissioner should be allowed to bring ostensible violations to the notice of the relevant authority under that respective Act, who can then decide whether there is a violation and take action,” said Gautam Nayak, tax partner at CNK & Associates.

If its registration is cancelled, a charitable trust’s income will no longer be tax-free and it would also have to pay an ‘exit tax’ on market value of its assets

Chemotherapy: 10 days more leave for govt staff

Chennai:06.07.2019

The government has decided to grant 10 days additional leave for its staff undergoing chemotherapy and radiotherapy, minister for fisheries, personnel and administrative reforms department D Jayakumar announced in the assembly on Friday.

Meanwhile, Aavin products will be exported to 14 foreign countries, minister for milk and dairy development K T Rajenthra Bhalaji told the assembly. From December 2017, the Tamil Nadu Milk Producers’ Cooperative Federation Limited has been exporting milk and milk products to Singapore, Hong Kong and Qatar, he said. The TNMPF is taking all required steps to expand the exports to other countries, said the minister, adding that an exclusive wing has been created in the federation for that purpose. TNN

Genuine candidates denied med seats, fee structures not adhered to, says CBI

Bosco.Dominique@timesgroup.com

Puducherry:06.07.2019

The CBI has registered a case against the managing directors and registrars of four deemed universities and three private medical colleges and hospitals and unknown public servants of the directorate of health and family welfare on charges of criminal conspiracy, cheating and criminal misconduct while admitting students to MBBS course in their institutions for the academic year 2016-17.

The investigation agency said the deemed universities and private medical colleges denied MBBS seats under the management quota to the genuine candidates with a high percentage in the National eligibility cum entrance test (Neet) and admitted ineligible candidates, who came forward to pay excess fees.

These institutions not only denied seats for genuine students but also did not adhere to the fees structure prescribed by the fees committee. These institutions did not submit the final list of admitted students neither to the government nor to the Centralized admission committee (Centac) and did not maintain any records on the number of applications received, Neet merit list and order of counselling.

The Medical Council of India (MCI) directed these institutions to remove 767 students who were admitted under management quota without complying with the rules and regulations.

“But till date no proposal was submitted by the health department for giving effect to the cabinet resolution for taking action against the erring private medical colleges. Hence, it is suspected that officials of the health department may have acted in connivance with these institutions," the report said.

The agency booked Mahatma Gandhi Medical College and Research Institute managing director Rajagopalan, Arupadaiveedu Medical College and Hospital managing director Ganesan, Vinayaga Missions Medical College registrar Ponniyin Selvan, Sri Lakshmi Narayana Institute of Medical Sciences managing director Anbalagan, Sri Manakula Vinayagar Medical College and Hospital managing director Dhanasekaran, Pondicherry Institute of Medical Sciences registrar Anil Jacob Purti and Venkateshwaraa Medical College and Hospital and Research Centre managing director Ramachandran and unknown public servants.

TN MBBS admissions: Rank list to be out today
Chennai:06.07.2019

Tamil Nadu health minister C Vijaya Baskar will release the rank list for MBBS and BDS admissions at 8.50am today.

The selection committee postponed the release of the rank list twice. The list was delayed as nearly 3,000 candidates failed to hand over the original certificates and application forms for verification. “It can be verified after we release the rank list. But we wanted to make sure that we have the documents,” said selection committee secretary G Selvarajan. This year, the cut-offs are expected to increase as there has been crowding at the top. The health department has said a policy decision on quota for economically weaker section will be taken after an all-party meeting. If the state adopts the quota, the medical seats in government quota will increase by 25%. TNN

Nalini seeks six months, Madras high court grants 30-day parole as per rules

DECCAN CHRONICLE. | J STALIN

PublishedJul 6, 2019, 2:53 am IST

The petitioner is granted 30 days of ordinary leave to facilitate the arrangement and preparation for her daughter’s marriage.

Life convict in the case of the assassination of Rajiv Gandhi S. Nalini arriving at Madras high court on Friday. (Photo: DC)

Chennai: The Madras high court has granted the maximum period of 30 days ordinary leave (parole) as per rules, to S.Nalini, serving life sentence in special prison for women at Vellore, for her involvement in Rajiv Gandhi assassination case, as against her plea for six months leave for making arrangements for her daughter’s marriage.

Disposing of a petition from Nalini, a division bench comprising Justices M.M.Sundresh and M.Nirmal Kumar said, “The petitioner is granted 30 days of ordinary leave to facilitate the arrangement and preparation for her daughter’s marriage. It is well open to her to fix the marriage if it is possible within the aforesaid time. This relief is granted to her subject to the compliance of Rule 25 of the Tamil Nadu Suspension of Sentence Rules, 1982”.

The petitioner shall furnish the particulars relating to the names of the sureties, address of the place in which she is going stay apart from due compliance of the rules within one week. Due verification can be made by the police on the compliance of the petitioner within 10 days thereafter. After such verification, the petitioner shall be granted leave for 30 days. On completion of 30 days, the petitioner will have to surrender before the police authorities at 5 pm on the next day, the bench added.

The bench recorded the statement made by the petitioner that she would not give any interview and she would not have any meeting with the leaders of the political parties or any other organisation.

When the case came up for hearing, the police produced Nalini before the court. She read out a prepared speech and expressed her grievance and the ordeal she underwent for nearly 28 years.

She prayed the court to grant 6 months of leave.

Pointing out that rule 22 of the rules provides for a maximum period of 30 days as ordinary leave for a convict at a point of time, state public prosecutor A.Natarajan submitted that the petitioner has to comply with rule 25 of the rules and appropriate orders can be passed in the light of the rules governing.

The bench said, “Though the petitioner has poured out her grievance including incarceration for nearly 28 years, we are not willing to go into the same as any adjudication or observation over it would be beyond the scope of this petition”.

The bench said the fact that the petitioner was having an unmarried daughter, aged about 27 years, who could not live with the parental guidance was not in dispute. Rule 20 also provides for grant of ordinary leave in such an eventuality. However, rule 22 speaks about the maximum of 30 days as ordinary leave. Though the rule speaks about the extension of the eligibility, the same can be only exercised after the initial grant. “Thus, we concur with the statement made by SPP A.Natarajan that 30 days is the maximum period which can be permitted at the time of granting leave under the rules. We also take judicial notice of the fact that the state government itself has made a recommendation for the premature release of the petitioner. From that, we can infer that her conduct is otherwise not adverse. If, in view of the state government, the petitioner can be allowed to lead a normal life and she would not be a hindrance to society otherwise, the request for leave can never be objected, which is also not the cas
e before us”, the bench added.

The bench said taking note of the fact that it was the first time in which the petitioner seeks ordinary leave coupled with the fact that some of similarly placed persons have been granted ordinary leave and in the light of the recommendation made by the state government itself, it was inclined to grant the petitioner 30 days ordinary leave. This leave was subject to the compliance of rule 25, the bench added.

Referring to the plea of Nalini with respect to the payment of cost for the escort, the bench said, “We concur as there is no material to hold that she is a woman of means. Admittedly, she and her husband are in incarceration for decades. Rule 16 of the rules also provides for escort by the government at its own cost. Asking the petitioner to pay the cost would in a way take away the very order passed by us when it is impossible of compliance. In such view of the matter, we direct the authorities not to insist upon any cost for the escort to be provided to the petitioner”.

DC impact: SHRC seeks report from Tamil Nadu officials in 4 weeks

DECCAN CHRONICLE.

PublishedJul 6, 2019, 3:24 am IST

Transwoman Rakshika’s plight evokes quick response.

Rakshika Raj

Chennai: The State Human Rights Commission directed state government to file a report for refusing to register the degree course of a transwoman. Based on a report in Deccan Chronicle, SHRC judge D Jayachandran initiated suo motu proceedings and directed the authorities to file the report in four weeks.

According to the report, Rakshika Raj born as Rajkumar in Walajabad, Kanchipuram, said that she identified her sexuality when she was in high school. After schooling she joined the Padmashree College of Nursing, Wallajabad where she says she received support from the college. Rakshika, who was recently in the news for receiving her degree in B Sc Nursing from Governor Banwarilal Purohit at the 31st convocation ceremony of MGR medical varsity said that the Tamil Nadu Nurses and Midwives Council (TNNMC) does not have a separate box for transgenders in application and other forms.

The TNNMC is waiting for a government order (GO) to implement the Supreme Court’s historic 2014 judgment which ruled that transgenders are eligible to all rights as every other citizen of the country and can apply for education and employment under the ‘other’ gender category, Rakshika says.

The failure on government’s part to pass the GO has made Rakshika’s life hard, who says and she is struggling financially with no job in hand, even a year after she graduated.

Judge D. Jayachandran directed the TNNMC to explain why it failed to registered the degree of Rakshika and why government failed to pass a GO to implement the Madras High Court order relating to reservation for admission in educational institutions and appointment in government services, and whether failure to implement the high court orders do not amount to violations of the human rights of Rakshika. The judge directed the principal secretary, health and family welfare department and president of the TNNMC to file the report in four weeks.